On Thursday, Air India which is state-owned carrier said that it will not layoff any of its employees amid the COVID-19. The coronavirus has compelled many airlines to cutoff their employees’ as a cost-cutting measure.
This decision by Air India took place in a meeting of the Air India Board and the Ministry of Civil Aviation. Later, the airline tweeted the news on its official Twitter account.
Moreover, Air India also announced that apart from no reduction of employees it will also not reduce the basic pay, house rent allowances (HRA), and dearness allowances (DA).
Air India said that they have made some “rationalisation of allowances.” It further said that these “rationalisation of allowances” will be reviewed after the financial position of airline improves.
Air India tweeted the following:
“Recent decisions of AirIndia Board regarding rationalization of staff cost were reviewed in a meeting at @MoCA_goi this evening. The meeting reiterated that unlike other carriers which have laid off large number of their employees, no employee of AirIndia will be laid off.”
Last week, Air India Chairman and Managing Director (CMD) Rajiv Bansal had said that the carrier was working to contain costs by reducing debt, aircraft lease rentals, as well as staffing and operating expenses.
After the airline issued an internal order this statement came. The internal order asked its departmental heads and RD to recognize employees based on many factors like health, efficiency, and redundancy, who will be sent to mandatory LWP for up to 5 years. (LWP- Leave Without Pay).
The aviation sector has witnessed layoffs and pay cuts in several companies with lockdowns across the world resulting in travel bans, which have put airlines under financial stress. Most recently, the country’s largest private airline IndiGo said it will lay off 10 per cent of its staff with the company’s Chief Executive Officer (CEO) Ronojoy Dutta saying the coronavirus pandemic has forced the carrier to re-evaluate its “best-laid plans”.